UBM relies entirely on timber construction and pays high profits despite the crisis

The real estate developer UBM has clearly felt the crisis as a result of the 2020 pandemic and is still struggling this year: “We expect a dip in the 2021 Coronavirus – we hadn’t made any acquisitions for more than twelve months by the end of January,” the CEO said. Thomas Winkler In the balance sheet view. The trend reversal should be successful in 2022. High, unchanged dividends for 2020 of € 2.20 per share compared to 2019 ‘reflecting earnings expectations’.

The bottom line is that the last financial year ended with a decline in profits of approximately 19% from 50.1 to 40.8 million euros, and earnings per share decreased by nearly 29% to 4.39 euros (2019: 6.16 euros). Total production decreased from 678 euros to 478.6 million euros (minus 29.4 percent), while sales decreased from 242 euros to 183.3 million euros (minus 24.2 percent). The workforce decreased from 389 to 339 employees. With the planned dividends, the payout ratio will increase from 35.7 to 50.2 percent compared to 2019. The dividend yield is said to be “in excess of five percent”. All UBM executives are also UBM contributors.

The depth of the regression this year depends largely on the progression of vaccination and further closure. The CEO said: “We are confident that some things will return to normal – in 2022 we are confident to return to the path of success before Corona.” I think we are about to reach the end of a very long tunnel. “

You must succeed with one Change strategyThat started in 2020 due to the crisis. The The company “lost” the hotel industry, according to Chief Financial Officer Patrick Tate. “We have strategically reorganized – we have shrunk the hotel sector a lot.” Meanwhile, there were devaluations of up to 21 million euros. “All hotel projects that were not under construction in March 2020 have been rehabilitated as apartments and offices,” Winkler reported.

The The board of directors of UBM Development AG will soon be strengthened with renowned hotel expert Martina Maly-Gärtner. Starting in October at the latest, it will be responsible for 13 hotel operations combined under the UBM umbrella and will grow to 15 companies by the end of the year, “in order to recover the money we lost there,” Winkler said. The new board member will also be interested in human resources and sustainability. “The appointment of Martina Maly-Gärtner does not change our strategy of not pursuing any other hotel developments for the time being,” the UBM president emphasized.

The company has not changed the weighting of asset classes (office, residential, hotels), but has also committed itself to a green line for sustainability for the future. Pointing to the trend, Winkler says, “For us, the word ‘green’ means wood construction – we want to position ourselves as the largest wood developer in Europe.” The company mainly focuses on Germany and Austria. Offices should be “standardized” so that every client knows what they are getting. Standardization and prefabrication should bring cost advantages. UBM is currently building the first mixed-timber office building in Frankfurt. The financing will be transferred to “green finance” and “green investment”.

This year’s UBM Public Meeting – as well as today’s balance sheet press conference – will be held roughly again on May 27th.